(WASHINGTON, DC) – The House of Representatives approved legislation Wednesday to simplify federal financial laws and regulations, easing the burden on our financial institutions and small businesses. H.R. 3505, the Financial Services Regulatory Relief Act of 2005, was introduced by Congressman Dennis Moore (Third District-KS) and Congressman Jeb Hensarling (Fifth District-TX) on July 28, 2005.

“Both businesses and consumers benefit when federal laws and regulations are streamlined to improve efficiency in the financial sector and assist small lenders,” said Moore, a member of the House Committee on Financial Services. “America’s financial services industry is the most effective and competitive in the world and this bill will help us stay out in front. Reducing regulatory burdens on businesses and consumers is simply the right thing to do.”

The Financial Services Regulatory Relief Act will significantly reduce the amount of time financial institutions spend filling out paperwork and will free up resources for the thousands of institutions on the front lines of community lending.

Specifically, the Financial Services Regulatory Relief Act would:

• Remove the prohibition on banks crossing state lines by opening branches;
• Allow regulators to adjust exam cycles of healthy institutions for greater efficiency;
• Modernize recordkeeping requirements for regulators;
• Give flexibility to banks in payment of dividends;
• Increase the ability of savings associations to invest in small business investment companies and remove limits for thrifts on small business and auto loans;
• Limit de novo branching for industrial loan companies unless their parent company’s business is 85 percent financial in nature, or those who had Federal deposit insurance before October 1, 2003; and
• Maximize the effectiveness of the Bank Secrecy Act by streamlining the process of filing currency transaction reports and suspicious activity reports to ensure that institutions are providing the necessary information to regulators and federal law enforcement agencies to successfully wage war on terrorist financial networks.

“I am proud to have played a role in the bipartisan construction of this legislation,” Moore said. “The overwhelming support that this bill received shows just how important it is, for both businesses and consumers, that Congress pass meaningful regulatory relief legislation soon.”

H.R. 3505, which was unanimously approved by the Committee on Financial Services last November by a vote of 67 to 0, now awaits consideration by the Senate.